For Immediate Release
Chicago, IL – October 23, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Target Corporation (TGT - Analyst Report) , Wal-Mart Stores Inc. (WMT - Analyst Report) , Amazon.com Inc. (AMZN - Analyst Report) , Costco Wholesale Corporation (COST - Analyst Report) and Quest Diagnostics (DGX - Analyst Report) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: https://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Target to Open More Stores
In an effort to further strengthen its operational roots, Target Corporation (TGT - Analyst Report) , the operator of general merchandise and food discount stores in the United States, announced the opening of 3 new stores in Chicago, New York and San Francisco.
The move reflects the company’s strategic initiative to expand in regions where it generates strong sales. Moreover, the San Francisco store is the extension of its smaller-format stores called CityTarget.
Target Corporation, in order to tap the urban markets where real estate remains a constraint, plans to introduce smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT - Analyst Report) .
Earlier, the company unveiled its first three smaller format stores in Los Angeles, Seattle and Chicago. We believe that the approach will help the company to augment its sales by enhancing its accessibility to the country’s thickly populated urban regions and space-crunched cities.
The company has announced its plan to open 10 Target stores in 2013, which includes the smaller format stores in Los Angeles, Portland and San Francisco.
Moreover, the company for the first time announced that it will allow its shoppers to match the prices being offered by online retail giants. Consumers will have the facility of compare prices being offered by Amazon.com Inc. (AMZN - Analyst Report) , Wal-Mart Stores Inc.’s Walmart.com, Best Buy Co. Inc.’s BestBuy.com and Toysrus.com.
According to the price matching policy, the customer will not find any discrepancy in pricing if an item is purchased between November 1st and December 24th from Target stores. However, if the item costs less at Target.com or in a local competitor’s printed ad, Target will provide items matching the price.
Currently, we have a long-term ‘Neutral’ rating on the stock. However, the company, which competes with Costco Wholesale Corporation (COST - Analyst Report) , holds a Zacks #2 Rank, which translates into a short-term ‘Buy’ rating.
DGX to Buy UMass Medical Center
Leading diagnostic tester Quest Diagnostics (DGX - Analyst Report) is keeping at par with its Merger and Acquisition (M&A) strategy which the company expects to remain as its key driver of growth. Recently as part of this strategy, the company teamed up with Central New England’s largest health care system UMass Memorial Health Care to purchase its UMass Memorial Medical Center.
Although financial terms of this definitive purchase agreement were not disclosed, Quest Diagnostics expects the transaction to be completed in the next 3 months, subject to certain customary regulatory clearance. The diagnostic testing stalwart expects the incorporation of UMass Memorial Medical Center to add 1% to the company’s consolidated revenues in the next fiscal with no bottom-line impact. However, the company expects this transaction to be accretive to its earnings per share (EPS) in fiscal 2014.
Quest Diagnostics expects this acquisition to establish a long-term relationship between the two organizations. The plan states that Quest Diagnostics' full-service laboratory in Cambridge and its Athena Diagnostics specialty neurology testing subsidiary in Worcester will be moved to a centrally located new facility in Massachusetts.
The company expects this facility, after being fully operational in next 18–24 months, to perform the testing currently performed at UMass Memorial's Worcester-based outreach laboratories as well as Quest Diagnostics’ Cambridge and Athena.
Per the plan, UMass Memorial will be taking a financial stake in the new entity that would develop and operate a leading-edge laboratory in Massachusetts in the future. Both the organizations expect this advanced laboratory service to include a number of benefits like higher quality service, expanded information connectivity options, and reduced laboratory testing costs.
Quest Diagnostic believes that the impending acquisition is in sync with its goal to create the company’s planned 'lab of the future' which will help it increase long-term growth opportunities and increase shareholders' value.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: https://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: https://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at https://at.zacks.com/?id=5518.
Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339